ITB vs. XHB
Compare and contrast key facts about iShares U.S. Home Construction ETF (ITB) and SPDR S&P Homebuilders ETF (XHB).
ITB and XHB are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. ITB is a passively managed fund by iShares that tracks the performance of the Dow Jones U.S. Select Home Construction Index. It was launched on May 1, 2006. XHB is a passively managed fund by State Street that tracks the performance of the S&P Homebuilders Select Industry Index. It was launched on Jan 31, 2006. Both ITB and XHB are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: ITB or XHB.
Key characteristics
| ITB | XHB | |
|---|---|---|
| YTD Return | 4.96% | 10.38% |
| 1Y Return | 41.10% | 49.05% |
| 3Y Return (Ann) | 12.20% | 10.88% |
| 5Y Return (Ann) | 23.67% | 22.29% |
| 10Y Return (Ann) | 17.11% | 13.99% |
| Sharpe Ratio | 1.64 | 2.18 |
| Daily Std Dev | 25.03% | 22.65% |
| Max Drawdown | -86.53% | -81.61% |
| Current Drawdown | -7.89% | -5.53% |
Correlation
The correlation between ITB and XHB is 0.95, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
ITB vs. XHB - Performance Comparison
In the year-to-date period, ITB achieves a 4.96% return, which is significantly lower than XHB's 10.38% return. Over the past 10 years, ITB has outperformed XHB with an annualized return of 17.11%, while XHB has yielded a comparatively lower 13.99% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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ITB vs. XHB - Expense Ratio Comparison
ITB has a 0.42% expense ratio, which is higher than XHB's 0.35% expense ratio.
Risk-Adjusted Performance
ITB vs. XHB - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Home Construction ETF (ITB) and SPDR S&P Homebuilders ETF (XHB). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Dividends
ITB vs. XHB - Dividend Comparison
ITB's dividend yield for the trailing twelve months is around 0.46%, less than XHB's 0.69% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
ITB iShares U.S. Home Construction ETF | 0.46% | 0.48% | 0.86% | 0.37% | 0.46% | 0.50% | 0.63% | 0.28% | 0.43% | 0.34% | 0.34% | 0.12% |
XHB SPDR S&P Homebuilders ETF | 0.69% | 0.77% | 1.06% | 0.51% | 0.73% | 0.89% | 1.25% | 0.72% | 0.67% | 0.50% | 0.54% | 0.29% |
Drawdowns
ITB vs. XHB - Drawdown Comparison
The maximum ITB drawdown since its inception was -86.53%, which is greater than XHB's maximum drawdown of -81.61%. Use the drawdown chart below to compare losses from any high point for ITB and XHB. For additional features, visit the drawdowns tool.
Volatility
ITB vs. XHB - Volatility Comparison
iShares U.S. Home Construction ETF (ITB) has a higher volatility of 7.61% compared to SPDR S&P Homebuilders ETF (XHB) at 6.51%. This indicates that ITB's price experiences larger fluctuations and is considered to be riskier than XHB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.